Montana Chiropractors to Pay $450,000 Following Fraud Settlement

Missoula, MT (KGVO-AM News) - On November 15, 2023, Montana Attorney General Austin Knudsen announced that two chiropractors in Kalispell have agreed to pay the State $450,000 for restitution to settle allegations of Medicaid fraud.

“The Montana Department of Justice’s Medicaid Fraud Control Unit (MFCU) received a referral from Blue Cross Blue Shield of Montana alleging Cody C. Basler, 36, and Erik M. Lund, 30, submitted claims to the Montana Medicaid program for treatment that was not “medically necessary,” as defined by the State of Montana, from May of 2017 to December of 2021,” Knudsen said.

According to Knudsen, Basler was the owner and president of Basler Family Chiropractic and Lund was an employee during that time.

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MFCU identified claims that were non-reimbursable

"During an investigation into both doctors’ records from May 2017 through October 2021, MFCU identified claims that were non-reimbursable for reasons including that the referral was not directly related to a neuromuscular condition of the spine, the documentation reflected a reason for treatment was “general wellness,” and they lacked documentation of a patient’s loss of function or impairment,” Knudsen said.

Under the terms of both agreements, Basler and Lund are not admitting to wrongdoing, however, both are repaying the money to Montana Medicaid.

“Basler agreed to pay a total of $300,000,” Knudsen said. “The majority, $267,000, will reimburse the Montana Medicaid program and make it whole. The balance represents additional civil penalties and damages. Lund agreed to pay a total of $150,000 of which $87,000 will reimburse Montana Medicaid with the remainder representing civil penalties and damages.”

Assistant Attorney General Bree Gee prosecuted the case and it was investigated by MFCU Agent Joe Neussendorfer.

Knudsen is going to appear on KGVO’s Talk Back show this Friday from 9-10.